GLOBAL MARKETS-Shares rise after Fed rate cut, oil prices gain

(Adds oil, gold settlement prices)
* Microsoft hits record high, S&P 500 close to new high
* Oil futures rise as geopolitical risks after Saudi attack
remain

By Herbert Lash
NEW YORK, Sept 19 (Reuters) - A gauge of global equity
performance rose within 1% of a record high on Thursday, a day
after the Federal Reserve cut interest rates, but crude oil
prices climbed higher on concerns last weekend's attacks on
Saudi Arabia's oil facilities pose supply risks.
Iran warned U.S. President Donald Trump against being
dragged into all-out war in the Middle East after the attacks,
which Washington and Riyadh blame on Tehran. About half of Saudi crude production was disabled, putting
severe limits on the country's spare capacity, a cushion for
global oil markets if an outage occurs.
"The Saudi oil industry could be threatened again and we
could see more supply disruption from the Persian Gulf," said
Gene McGillian, vice president of market research at Tradition
Energy in Stamford, Connecticut.
Brent crude futures LCOc1 , the global benchmark, gained 80
cents to settle at $64.40 a barrel, while U.S. West Texas
Intermediate crude CLc1 settled up 2 cents at $58.13 a barrel.
European banking shares .SX7P rose 1.9% and the Swiss
franc CHF= posted its biggest gain in two weeks after the
Swiss National Bank declined to match the European Central Bank
and the Fed in easing monetary policy.
Major central banks have been loosening policy, mostly by
cutting rates, to stem a slowdown in global growth.
Upbeat U.S. data suggests the U.S. economy is still on a
moderate growth path. The number of Americans filing for
unemployment benefits increased less than expected last week,
pointing to strong labor market conditions. The pan-regional FTSEurofirst 300 .FTEU3 index of leading
European shares closed up 0.64%, while MSCI's gauge of stocks
across the globe .MIWD00000PUS gained 0.21%. MSCI's emerging
markets index .MSCIEF fell 0.46%.
Gains in Microsoft Corp MSFT.O shares pushed the S&P 500
.SPX , the U.S. equity benchmark, closer toward its record
high, while a rally in bank stocks lifted European shares after
the Fed set a higher bar for further rate reductions on
Wednesday.
Microsoft, the biggest U.S. stock by market cap, valued at
$1.08 trillion, hit $142.37 before paring some gains to trade
about 1.6% higher on the day. The S&P 500 at one point traded 6
points below its all-time peak of 3,027.98 set in July.
In afternoon trading, the Dow Jones Industrial Average
.DJI fell 5.84 points, or 0.02%, to 27,141.24. The S&P 500
.SPX gained 5.01 points, or 0.17%, to 3,011.74 and the Nasdaq
Composite .IXIC added 16.85 points, or 0.21%, to 8,194.24.
The U.S. dollar fell against the euro, the Swiss franc and
the Japanese yen after the Fed cut rates by 25 basis points on
Wednesday to provide insurance against the risk of weaker global
growth and resurgent U.S-China trade tensions.
Sterling jumped, rising 0.64% to $1.2548, after European
Commission President Jean-Claude Juncker said a Brexit deal is
possible. The dollar index .DXY fell 0.3%, with the euro EUR= up
0.23% to $1.1054. The Japanese yen JPY= strengthened 0.44%
versus the greenback at 107.99 per dollar.
U.S. Treasury yields fell after division appeared among
policymakers on whether the Fed would cut rates further and as
pressures in the short-term funding markets eased.
Benchmark 10-year notes US10YT=RR rose 2/32 in price to
push their yield down to 1.7752%.
U.S. gold futures GCcv1 settled down about $9, or 0.6%, to
$1,506.20 an ounce.

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Bank of Japan negative interest rates https://tmsnrt.rs/31gPRDp
Countries that spend biggest share of money on oil png https://tmsnrt.rs/31tPuFW
GRAPHIC-Global assets in 2019 http://tmsnrt.rs/2jvdmXl
GRAPHIC-World FX rates in 2019 http://tmsnrt.rs/2egbfVh
GRAPHIC-MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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